June 23, 2017

IT Governance & Financial Management All the Buzz at Financium

Fouad-Rwayane-at-Financium-2013I recently had the privilege of participating at Financium, the 11th annual conference of financial management executives, organized by DFCG, an online portal for financial leaders in France.

During the event the Changepoint team participated in two sessions:

  1. Transforming IT Governance to boost innovation and financial performance and;
  2. Financial optimization through better management of project teams

For the purposes of this blog, I’ll provide a summary of the key points made in the two presentations.

Transforming IT Governance

Prioritizing investments. Managing the financial risks and costs associated with information systems. How good is the IT Governance connecting IT and Finance, and can it withstand the challenges of business innovation while ensuring continued rational use of its resources?

Information systems are a key element in the performance of companies. It is fair to note companies who are leaders in their respective business sectors run on technologies that did not exist five years ago.

Strong IT governance is based on two pillars:

  1. Steering: How well do today’s business decisions lay the groundwork for the future (aligned with the Company’s strategy)? Are processes and roles well defined? Are decision criteria understood, broadly accepted and thoroughly implemented?
  2. Control: Are the decisions made yesterday, six months ago, a year ago being properly executed? Are the resulting projects progressing as planned and producing the expected value?

Industrialized process provides end to end management control over vital aspects of the IT decision making process, ensuring good IT governance and strong links between IT and the financial sides of the business.

  • Demand management provides a consolidated view of demands that avoid investment in redundant or non-strategic projects.
  • Operational and financial management of projects helps to avoid delays, uncover untapped opportunities, and mitigate the risk of user dissatisfaction.
  • And finally, Management of recurring costs and application portfolio ensures that IT spends its scarce and valuable resources (human and financial) on strategic initiatives important to the growth of the company, rather than maintaining existing, but non-critical systems.

Resource Management

Having the right resources, at the right time, with the right skills and capacity within an organization in project mode is crucial to the operational and financial performance of projects.

Resource management capability is especially vital for services organization whose primary and most critical “asset” is human capital and its purpose is to generate revenue and profits. Indeed, service organizations have three levers it uses to maximize its margin:

  • Maximize the billing rates of its resources
  • Maximize the utilization of its resources
  • Minimize the cost of its resources

For companies with a large number of projects and national and international geographical reach, these are critical management issues. Greater oversight of the resource pool, and improved ability to manage those resources can:

  • ensure the suitability of skill sets and mandates to avoid using overskilled resources on activities requiring low qualifications;
  • avoid unnecessary subcontracting;
  • and provide for personal development to ensure resource job satisfaction and maintain high retention rates.
frwayane@insidetechtalk.com' About Fouad Rwayane

Fouad Rwayane is PSA & PPM Business Consultant for EMEA. He has over 8 years’ experience with Changepoint specializing in the areas of IT Project and Portfolio Management and Professional Services. He has Managed the Compuware France PMO and has spent over 20 years managing and supporting the delivery of projects for customers.